Apple posts over $20 billion in sales, $4.31 billion profit for fourth quarter

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Date: Tuesday, October 19th, 2010, 06:56
Category: Finance, News

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Apple on Monday reported a “great fiscal quarter,” citing a quarterly profit of US$4.31 billion, compared to US$2.53 billion for the same period last year. Over the quarter, Apple recored US$20.34 billion in revenue, an increase of nearly 67 percent from the year-ago quarter’s sales figure of US$12.21 billion.

Apple’s earnings of US$4.64 per diluted share handily beat estimates by Wall Street analysts who were expecting the company to report earnings of US$4.06 a share on $18.86 billion in revenue for September quarter.

“We still have a few surprises left for the remainder of the calendar year,” said CEO Steve Jobs in a statement accompanying the earnings. Apple has scheduled a press event for this Wednesday where the company is expected to focus on the Mac.

Per Macworld, Apple executive Peter Oppenheimer credited record iPhone sales, enthusiasm for the iPad, and a new quarterly sales record for Mac sales as the drivers behind Apple’s strong quarterly performance. In particular, Apple sold 4.19 million iPads during the first full quarter of sales for the tablet; all told, the company sold 7.5 million iPads during its 2010 fiscal year.

For the fiscal fourth quarter, Apple recorded US$2.8 billion in sales of iPads and related accessories, with the iPad accounting for US$2.7 billion of that figure. That translates to an average selling price of around US$645 for the tablet, Oppenheimer said.

iPad sales may disappoint some analysts, who were expecting Apple to sell close to 5 million tablets. One of the issues may be with inventory—Apple says it has three-to-four weeks worth of channel inventory, which is below its target range of four-to-six weeks. The company plans to expand its iPad distribution efforts, adding retailers like Verizon, Walmart, Target, and AT&T into the mix as well as launching in additional countries.

As for the iPhone, Apple managed to sell 14.1 million units during the quarter. This marks a 91% increase over the 7.4 million phones sold during the year-ago quarter and a new quarterly record for smartphone sales for the company.

For the 2010 fiscal year, Apple sold 40 million phones, a 93 percent jump over 2009. During September, the company says it passed the 125 million mark for cumulative iOS sales of its iPhone, iPad, and iPod touch offerings.

Apple also saw a record quarter for its Mac business. The company sold 3.89 million computers, up 27% from its year-ago sales. Fourth-quarter Mac sales topped the previous high-water mark of 3.47 million mark set during the June quarter. Year-over-year sales growth was more than double the growth rate projected for the overall PC market by research firm IDC, according to Oppenheimer.

Notebooks continue to drive Mac sales, with portable products, accounting for 71% of the Macs sold during the September quarter. However, sales of desktops rose nearly 28% to a little more than 1 million units, on the strength of the company’s iMac and Mac Pro updates over the summer.

Despite the largely positive news, the iPod segment continues to shrink, with Apple selling 9.05 million music players during the quarter (an 11% drop from last year’s figures). Apple updated its iPod line in September, though the company usually sees the fruits of those efforts during the holiday quarter.

While iPod sales growth stalled throughout 2010, Apple opted to focus on the positive Monday. It noted that the iPod’s share of the MP3 player market in the U.S. continues to top 70% according to research firm NPD’s figures. And Apple says its music player gained market share internationally from the year-ago quarter. The company also reported that its iTune Store brought in more than US$1 billion in revenue for the September quarter.

Apple CEO Steve Jobs took a minute during the conference call to comment on the company’s “hobby” product, the Apple TV, announcing that it had moved more than 250,000 units since the device went on sale. That’s the first time the company has ever revealed sales information for the device, which has gone through a number of iterations since its original introduction in 2007. Jobs confirmed that Apple had moved to an all-streaming model for content for the device, which will allow streaming of media from iOS devices in November when Apple ships iOS 4.2.

Apple’s retail segment had what Oppenheimer called a “record-breaking quarter,” with revenue rising 75% to US$3.57 billion. Apple sold 874,000 Macs through its retail arm, an increase of 30% from the year-ago quarter. The company sales that half of the Macs sold through its brick-and-mortar outlets continue to be to customers who are new to the platform.

Apple ended the fourth quarter with 317 stores, 84 of which were outside the U.S. The company opened 24 new stores during the quarter, with 16 of those opening outside of U.S. borders. In fact, with new store openings in Spain, Apple now has retail outlets in 11 countries.

The company also stated that it plans to open 40 to 50 stores during the coming fiscal year, with half of those slated for outside the U.S. The company also plans to start renovating several of its U.S. stores during 2011.

Monday’s earnings report closes the book on Apple’s 2010 fiscal year, which saw the company record US$65.2 billion in sales, a 52% increase from the US$42.9 billion in revenue recorded in 2009. Apple turned a US$14 billion profit in 2010, an increase of 72% from the previous year.

“The September quarter was the culmination of a monumental year for Apple,” Oppenheimer said.

Apple launches updated MobileMe calendar, removes membership requirements

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Date: Friday, October 15th, 2010, 05:14
Category: News, Software

Apple announced Thursday that its new web-based calendar application for MobileMe subscribers has officially exited the beta stages and is now available to all members.

Users looking to become new calendar members simply need to sign in to me.com/calendar, click “Upgrade now” in the lower left corner of the Calendar web application, and follow the instructions. Current members who’ve been using the Calendar since it was a beta product don’t need to do anything.

Per AppleInsider, Apple has stated the new MobileMe Calendar was designed to integrate more fluently with the built-in calendar app on iPhones, iPads, and iPod touches by always keeping it in sync with a Mac or PC. New events or changes are automatically pushed to iOS 4 devices so the calendar stays up to date. Users who schedule a meeting on their iOS devices will also see that meeting pushed everywhere too.

The new version also makes it easier for users to share calendars with one or more MobileMe members to keep everyone on the same page. For example, users can create a shared calendar called “Family” for weekend activities, then allow family members to edit events, and then receive email notifications informing them of those changes.


Another new features lets users share a read-only public calendar, which Apple says is ideal for publishing an events calendar such as a child’s sports team schedule. Once set up, a link to view the calendar can be sent to other team members for viewing on their iPhone, iPad, iPod touch, Mac, or PC.


Users can also invite guests to an event by adding their email address to the event (they don’t have to be a MobileMe member) and guests will get an invitation email they can respond to directly by clicking a link. The event then automatically updates, making it easy to track RSVPs right in the calendar.

These features tie into new web application at me.com with redesigned day, week, and month views, as well as a new list view to make scanning events easier.

Apple says the new web application works best with the Safari 5, Firefox 3.6, and Internet Explorer 8 web browsers. Compatibility with iPhone or iPod touch requires iOS 4.1, while iPad users must be running either version 3.2 or 4.2 (due this November). Mac users must have Mac OS X 10.6.4 or later installed and PC users will need MobileMe Control Panel version 1.6.3 and Outlook 2007 or 2010.

If you’ve tried the new calendar and have any feedback to offer, let us know.

iPad to hit Verizon retail outlets on October 28th

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Date: Friday, October 15th, 2010, 05:11
Category: iPad, News, retail

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A few major changes may be coming to fruition as wireless carriers AT&T and Verizon announced Thursday that they will begin selling Apple’s iPad in their brick-and-mortar retail stores on Thursday, October 28th, with the latter offering the device in conjunction with its MiFi mobile hot spots.

Per AppleInsider, AT&T said all three iPad Wi-Fi + 3G models will be available at more than 2,200 AT&T Stores starting October 28th. The wireless operator said it will be pitching the tablets alongside its 3G pre-paid data plans complete with Apple’s easy on-device activation and management.

Plans start at US$14.99 per month for 250MB and US$25 per month for 2GB with no term contract. Both plans include unlimited access to AT&T’s 23,000+ domestic Wi-Fi Hot Spots. The iPads themselves will sell for Apple’s suggested retail price of US$629 for the 16GB model, US$729 for the 32GB and US$829 for the 64GB.

For its part, Verizon will offer only the WiFi versions of the iPad, bundling them with its Verizon MiFi 2200 Intelligent Mobile Hotspot routers for a suggested retail price of US$629.99 for iPad Wi-Fi 16GB + MiFi, US$729.99 for iPad Wi-Fi 32GB + MiFi and US$829.99 for iPad Wi-Fi 64GB + MiFi.

Verizon is offering a monthly access plan to iPad customers of up to 1GB of data for US$20 a month. In addition, the carrier will also offer all three iPad Wi-Fi models on a stand-alone basis.

Verizon’s MiFi 2200 unit allows users to create a personal Wi-Fi cloud capable of sharing the high-speed Internet connectivity of the Verizon Wireless 3G Mobile Broadband network with up to five Wi-Fi-enabled devices. The MiFi 2200’s rechargeable battery provides up to four hours of active use and 40 hours of standby time on a single charge.

Stay tuned for additional details as they become available.

Analyst points to supply chain activity, cites strong evidence for new Apple sub-notebook on horizon

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Date: Thursday, October 14th, 2010, 05:16
Category: MacBook Air, News

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Recent activity within Apple’s supply chain throughout 2010 has shown signs that the company is gearing up to introduce a new notebook that doesn’t fit into any of its existing hardware designs, according to one Wall Street analyst.

Per AppleInsider, Kaufman Bros. analyst Shaw Wu said in a recent note to clients that a new MacBook Air from Apple appears increasingly likely to make an appearance during next Wednesday’s special “Back to the Mac” event, which is set to take place at 10:00 am local time on the company’s Cupertino campus.

“Our checks with supply chain sources over the last 6-9 months have indicated evidence of a new subnotebook form factor,” he wrote. “We had thought it would be released earlier this year but believe it may finally see the light of day as the new MacBook Air.”

Meanwhile, other “industry sources” have reportedly informed the analyst that Apple is making much progress in the area of “true” multi-touch Macs. Such products are believed to be more feasible today than ever, given the success of the 9.7″ iPad which is believed to be helping to bring down the cost of touchscreens and substrates, which have previously been prohibitively expensive.

Wu also claimed that the next version of Apple’s iLife application suite, which his “sources have indicated has undergone extensive testing,” could be unveiled along with a preview of Mac OS X 10.7 “Lion” and possible speed bumps to the MacBook and MacBook Pro line.

Stay tuned for additional details as they become available.

Apple releases third iOS 4.2 beta, adds SMS ringtones, changes AirPlay functionality

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Date: Wednesday, October 13th, 2010, 04:47
Category: iPhone, News, Software

Late Tuesday Apple released the third beta of iOS 4.2 to developers alongside the second beta of iTunes 10.1, making subtle changes to the distributions of the former for both the iPhone and the iPad.

Per fscklog, the iOS 4.2 build releases seem to be following a two week cycle, as the first iOS 4.2 beta was released four weeks ago, with the second beta arriving two weeks after.

People familiar with the latest iOS beta said it is known as build 8C5115c.

The beta contains several significant changes, including an updated version of the modem firmware. Noticeably missing from the beta were AirPlay features from previous builds. The AirPlay button has disappeared from the Photos, Videos, and YouTube apps on the distribution for the iPad.

Developers have noticed a bug with the AirPrint functionality. When printing from an iPhone, the image sometimes prints as just the size of the iPhone’s screen, not the original image size.

The beta also packs a number of smaller additions. According to fscklog, the new beta adds “a larger number” of tones for receiving text messages on the iPhone 4. The 17 new SMS ringtones include tones such as “Calypso,” “Choo Choo,” “Sherwood Forest,” and “Tiptoes.”

In a minor change to the iPad, the Connect to iTunes recovery screen now uses the controversial new iTunes 10 icon.

The iTunes 10.1 beta released alongside the iOS 4.2 beta continues to support printing.

Stay tuned for additional details as they become available and if you’ve gotten your mitts on the new beta, please let us know what you make of it.

iPad to hit Walmart shelves Friday, October 15th

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Date: Tuesday, October 12th, 2010, 04:00
Category: iPad, News, retail

Retail giant Walmart has announced that hundreds of its stores will begin selling the iPad on Friday, October 15th. This number will eventually expand to 2,300 stores throughout November.

Per Electronista, Walmart revealed the news Monday evening, confirming last week’s rumor that the Bentonville, Arkansas mega-retailer would start carrying Apple’s iPad this week. The chain’s stores will offer all six models of the tablet device.

The iPad can be ordered online from the Walmart web site but must be picked up in store. Retail stores will feature the device as part of a “separate showcase of Apple hardware,” the report noted.

According to sources, some Walmart stores have already placed the iPad on the shelves alongside Apple’s iPods in advance of Friday’s official launch.

If you’ve seen the iPad at your local Walmart prior to the Friday launch, let us know.

Rumor: Second-gen iPad could feature 128GB of memory, Retina Display, USB port

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Date: Friday, October 8th, 2010, 04:40
Category: iPad, News

Coming this holiday season, round two of the iPad.

Per AppleInsider, Taiwanese component suppliers have indicated that Apple’s next-generation iPad will sport a 7-inch high-resolution Retina Display, a camera, and 128GB of capacity as well as the guesstimate that it could sell 45 million in 2011.

Brian White of Ticonderoga Securities said this week that suppliers contacted during a trip to Taipei indicated that Apple plans to launch a new iPad in the first quarter of the 2011 calendar year. In addition to having a smaller 7″ size, he also said the device will have a “micro or mini USB” port.

The information is similar to what Goldman Sachs said in late September, including the addition of a USB port. If true, the addition of a new port could be a result of the European Union making MicroUSB the default charging method for mobile devices.

White said the next-generation iPad will replace the first-generation iPad when it is released next year. He made no mention of Apple maintaining its 9.7″ model, though Goldman Sachs said the new 7″ variety would be in addition to the current screen size.

Stay tuned for additional details as they become available.

iPhone 4 shipping times drop to 5 to 7 days

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Date: Wednesday, October 6th, 2010, 05:48
Category: iPhone, News

Apple looks to have worked its its supply constraints for the iPhone 4 since the device’s June launch, AppleInsider reporting that the handset is now advertised for shipping within 5 to 7 days from Apple’s online store.

Both models of the iPhone 4 (available in 16GB and 32GB capacities for US$199 and US$299, respectively, with AT&T contract) now ship within 5 to 7 business days. The 8GB, US$99 iPhone 3GS ships within 1 to 2 weeks, while the white iPhone 4 remains unavailable.

The change in shipping times would imply that Apple has begun to catch up with strong consumer demand for the iPhone 4.

Shipping estimates had remained at three weeks or longer since the handset launched in June. In its first three days of availability, the phone sold a record 1.7 million units.

Apple has struggled to meet demand since launch, as supplies for overseas expansion have been constrained. Last month, the iPhone 4 launched in China, and carrier China Unicom was only able to fulfill about half of the preorders placed by customers.

In a similar fashion, Apple could not meet iPad demand for months after the touchscreen tablet launched in April. It took until late August for the Cupertino, Calif., company to improve online order shipping times to 24 hours.

The white iPhone 4 is still listed as unavailable, and Apple has not provided an update on the status of the device since July, when it said the product would not be available until “later this year.” The company has said that the white model proved “more challenging to manufacture than expected.”

Stay tuned for additional details as they become available.

iPad now directly available through Amazon.com, Target

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Date: Tuesday, October 5th, 2010, 04:23
Category: iPad, News

Just as the iPad went on sale at U.S. retailer Target, Apple’s tablet is also now available at the standard price for purchase direct through online storefront Amazon.com.

Per Amazon, customers can now buy the iPad through Amazon, though only the 32GB and 64GB Wi-Fi models are available. Both are offered at the same price as they are through Apple: US$599 for 32GB, and US$699 for 64GB.

The other four models are not yet sold by Amazon, but as before, third-party resellers have made Apple’s touchscreen tablet available with a premium markup. For example, the 16GB Wi-Fi-only model sells for a lowest new price of US$556.72 with another US$8.18 for shipping, an increase from the regular entry-level US$499 asking price.

iPad models now sold through Amazon are available without local tax for many customers. In addition, those who have Amazon Prime are eligible for free shipping.

The expansion of the iPad to Amazon’s warehouses is yet another step in the retail growth of the device. On Sunday, U.S. retailer Target began selling the iPad right on schedule, as the company announced it would in September.

Recentlye, the iPad became available for sale at all Best Buy stores in the U.S., expanding to 1,093 retail locations. Previously, the iPad was limited to 673 Best Buy Stores with Apple retail store locations.

Apple patent shows efforts towards expanded cloud-based syncing

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Date: Friday, October 1st, 2010, 02:40
Category: News, Patents

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A new Apple patent published this week, entitled “Configurable Offline Data Store”, shows that future mobile devices from Apple could sync and save large amounts of data over the Internet, allowing future access to information when an Internet connection is no longer available and removing the need to tether to a PC.

The invention, filed with the U.S. Patent and Trademark Office on June 14th, 2010, would synchronize data for offline use when an Internet connection is not available.

Per AppleInsider, the patent describes a system that would allow users to access content from a remote computer or server, but also save that information locally for use when an Internet connection is not available. The application also notes that users may want to disable their Internet because constant syncing and updating may result in poor performance.

It describes individual applications that would be able to access this cloud-stored data, dubbed “savvy applications.” These are distinguished from “non-savvy applications,” which would not have access to the remote data.

The smart syncing system would predetermine which data might be “reasonably requested” when the two machines are reconnected, having it queued an ready to go immediately. The system would also allow for other “requested records,” which would occur when changes are made to lesser-used files.

Current mobile devices from Apple like the iPhone have a number of options for users to sync basic data, such as iPhone contacts, with Internet-based services. But the company is also said to be interested in offering a cloud-based streaming service for purchased iTunes content, like music and movies.

The technology described within the patent application would allow such data to be stored locally, and synced from anywhere with an Internet connection, rather than on a local network or via a USB cable.

Such a feature could also be used with Apple’s App Store, where software downloads greater than 20MB in size are not allowed over cellular data networks. When on a 3G network, the client-side machine (an iPhone or iPad) could save an intended download for later, when it can be obtained over a Wi-Fi network.

Stay tuned for additional details as they become available.